December 3, 2009 / 10:34 AM / 10 years ago

UPDATE 1-BYD gets $2.2 bln in credit from Bank of China

* BYD receives 15 bln yuan in credit - BOC

* Fund seen to be invested in solar energy, EV - analyst (Adds comments of BYD and analyst, details)

BEIJING, Dec 3 (Reuters) - Chinese car and battery maker BYD Co Ltd (1211.HK) has received 15 billion yuan ($2.2 billion) in credit from the Bank of China (601988.SS)(3988.HK), the bank said on Thursday.

Bank of China said in a statement on its website ( the two firms signed a strategic cooperation framework agreement involving financial support of 15 billion yuan, without elaborating.

A BYD spokeswoman in Shenzhen declined to comment on the agreement or the purpose of the capital.

BYD does not lack cash and is likely to use the credit to invest in new areas, such as solar energy and new energy vehicles, said Frank He, an analyst with BOCI Research in Hong Kong.

“It is comforting for the company to secure a credit line,” He said. “You never know whether credit would be tightened next year.”

Shenzhen-based BYD, 10 percent owned by U.S. billionaire Warren Buffett’s Berkshire Hathaway (BRKa.N), last month posted a net profit of 2.34 billion yuan ($342.8 million) from January to September, sharply up from 777.8 million yuan the previous year.[ID:nHKG347129] ($=6.83 yuan) (Reporting by Michael Wei and Simon Rabinovitch; Editing by Jacqueline Wong) ((; +8610 6627 1003; Reuters Messaging: ((If you have a query or comment on this story, send an email to

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